Telecom service providers in stiff promo battle

Promotion has become the latest advert tool used by telecommunication companies in Nigeria to secure customers’ attention. The promos are aimed at getting new customers and retaining old subscribers. It is interesting to observe the race going on in the telecom industry as they try to lure consumers with different promos in order to out-do each other. These promos are quite amazing: for the new mobile users, it is the real deal. But for the first generation of GSM users, they feel cheated. Some of the promos thrown out by the telecoms companies would have sounded impossible some eight years ago.

I spoke with an Airtel subscriber, Mrs. Esther Raji. She said: “I bought my Econet SIM card for N50,000 and I was spending N35 per minute on every call I made. There was no consideration for intra-network calls. I never knew a day would come when the same SIM card would be sold for N200”.

The telecoms industry in Nigeria has grown exponentially after the GSM mobile operators were licensed in 2001. Mobile Telecommunication Network (MTN) was the first mobile operator to set up shop on Nigerian soil. The rush for mobile phone acquisition was not so high but it was a big relief for the Nigerian middle class. Prior to the arrival of the mobile phone operators in Nigeria, telephones, and more specifically, mobile phones were strictly for the upper echelon, the high and mighty. The Nigerian telecommunication Limited (NITEL) was the only service provider and its operation and services can best be compared with our present day Power Holding Company of Nigeria (PHCN). Epileptic network service, poor customer relations, embezzlement, and clumsy telephone wires, characterized the organization’s operations. Power soon changed hands when the telecommunications sector was deregulated.

MTN came in and erased all of the flaws that NITEL exhibited. For starters, you no longer needed to bribe an engineer to fix your telephone line; all you needed to do was to call the customer service line. Wireless technology was introduced, putting an abrupt end to scattered NITEL poles and wires. Though signals were not at their best then, it was much better than what NITEL offered. Within six months of operation in the country, MTN had 350,000 subscribers with their coverage strong in Lagos, Port-Harcourt and Abuja. At present MTN Nigeria is the market leader, with a subscriber base forty-one million strong. It also has the widest network coverage in Nigeria. Subscribers’ major complaint is congestion and high tariff, said Bisi Ilori, a former subscriber.

Econet Wireless Nigeria flagged off in 2001. From Econet to Vmobile, Vodacom, Celtel, Zain and now Bharti Airtel; the company has had its share of troubles. Customers got weary of the constant change of name and tariff plans. They go to bed at night as subscribers of one company, and wake up the following day as customers of another. According to the Nigerian Communications Commission (NCC), Airtel presently has slightly above 20 million subscribers.

On August 29, 2003, Globacom Limited entered the market to become the first indigenous mobile telecommunications company after the defunct NITEL. Its arrival was much anticipated because of its promise to reduce tariffs. Glo came in with the per-second billing plan which today has become the most used billing plan. Presently it has over 25 million subscribers.

So, telecommunications in Nigeria has come a long way. But is all well? Are consumers really getting the best service possible? What do we make of the many promos that are launched by the telecom companies? Are these promos intended to benefit subscribers like these companies claim they are? Promos, of course, are effective tools for gaining customer loyalty in any kind of business- if they are done with the interest of the customer at heart. Presently, virtually all of the telecoms companies have a use airtime-and-get-free credit promo. Good. But what do we make of those that encourage subscribers to recharge and win airplanes? Airplanes! Luxury buses! These promos are so spectacular, they almost border on nonsensical. Does anybody really think that they’ll win airplanes by using a recharge card of two hundred naira? The companies of course, make no such claim. They just leave out a few details.

The question is: Are these promos necessary? Promos, by nature, are short-term solutions to long-term problems. All promos eventually come to an end- tariff cuts, bonus airtime, and yes; the chance to win airplanes. The major, long-term problem in our part of the world is quality of service. The long race usually goes to the tortoise, not the hare. According to a telecom expert, Idowu Aina, team lead, microwave transmission unit Huawei telecommunication company Nigeria said “telecom companies should focus more on delivering quality service to their customers. This is bound to win in the long-term than any promo play could”.

It is not their fault bcos government and government officials encourages them to milk and swindle us dry. NCC under the leadership of the former executive vice chairman, Earnest Ndukwe failed to sanction these operators for a day in his ten years leadership of the commission. Why won’t the operators do what ever they like? The solution is for government to revive and revamp NITEL and equip her to be able to compete with these ovezealous operators. By this, more employment opportunities will be created and more revenues wil be generated.

Okoroji U. Nathan

From the little i’ve experienced especially at the hands of globacom Nigeria where they say i won an all expence paid trip to the uk and all i got was a trip to there scam dairy, after they used me for there publicity stunts and all infront of the media.
you can read briefly abt it here – http://www.nairaland.com/1079553/glos-all-expense-paid-trip

for me i have lost all believe in there promos if i ever had any.

St iyke

4get dat there promo,ok watch dis mtn,how do d think we belive them and there airplane,imagine?ever since dis promo started to make calls na wahala

Rev Layi Oyewale

The promo apart from from deception expose someone to fraudulent acts of con men. All in the name of promo, many have been swindled and lost their hard earned money. May God help us.

OAO

The promo apart from from deception expose someone to fraudulent acts of con men. All in the name of promo, many have been swindled and lost their hard earned money. May God help us.